Main stock market regulators have declined Quindell's attempt to gain a premium listing.
The insurance claims processor told the stock market that it had been advised it has not been able to satisfy the criteria for a main market listing because its business has undergone a significant change in its scale or operations during the period of the historical financial information, over the last three years' audited accounts.
Rob Terry, executive chairman of Quindell, said: 'Firstly, I would like to take this opportunity to apologise to shareholders, who will no doubt be as disappointed as the board are at hearing this news. This is in no way reflective of the success of fundamental performance of the business. Quindell's relationships with customers and partners remain exceptionally positive, with a number of initiatives being undertaken in new territories and relationships in existing territories continuing to expand.'
He added: 'Regrettably it is Quindell's success and change of scale of its operations during the last three years that is a core reason for the group not being deemed to be eligible for a premium listing at this time.'
Quindell will continue to seek a listing on the main market and the group said it will explore other options, including listing in North America.
The company hit the headlines back in April after Gotham City Research became a short-seller and published allegations about its finances.